Brand and category dominance cannot solely be relied upon as sources of competitive advantage to maximise profit. FMCG manufacturers must reassess where to play and how to play.
Most organisations have written a business strategy that provides guidance for the business direction and operational decisions. Often these business plans have some weaknesses that only become apparent after major shocks like the GFC; some basing actions on opinions rather than a rigorous fact base, assuming the future will be like the past and not considering other scenarios, and focusing on current operational problems not long term opportunities.
Ambition is a condition for business success. Concepts such as 'Stretch' and 'Blue Ocean' push the thinking 'outside the box'. But, how often do these visionary ideas remain visionary? And what unintended risks do they invite? For example companies that trail their ambitious vision set themselves up for a spiral of increasingly risky bets.
Our Client, a publicly listed company operating in the Australian travel industry, has a wholesale ticketing business which has been under threat from several market factors. Pacific Strategy was asked to develop a five year strategy to combat these threats with specific analysis focusing on a number of initiatives already underway as well as new initiatives.
Our client had excess capacity at their paper mill which was being exported and required higher returns than could be realised in the export market.
The Australian cardboard box market appeared attractive with higher margins than the export market. The market is dominated by two large and aggressive incumbents.
An increasing trend towards digital media consumption was leading to declining newspaper readership. The fast developing tablet application market represented a host of challenges in monetising digital content.
Our client, a business unit within a global diversified resources company, engaged Pacific Strategy Partners to assist with developing their global marketing strategy.
The business unit was part way through a review of their future strategy and we provided analytical support, conducted research and provided insight and materials to support the strategy process.
Pacific Strategy was engaged by a multinational oil and petroleum retailer to assist with a strategy review for the client's Convenience Retail group. The review was a major strategic initiative for the client at a time when the retail fuel market was dominated by two players and the overall market was under heavy scrutiny from government regulators and the general public.
Develop potential competitive strategies and business unit design based on industry structure and dynamics, market changes, customer needs and behaviours, and company positioning. These strategies can be tested with a range of tools including valuation models, game theory, decision trees or real options.